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A note on inequality criteria

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  • SAVAGLIO, Ernesto

Abstract

The absolute differentials ordering (ADO) and the relative differentials ordering (RDO) have been introduced as suitable alternative inequality criteria to Lorenz ordering (LO). We provide two new alternative proofs that ADO and RDO are sub-orderings of LO. Furthermore, we point out some paradoxical situations , where these two different partial orderings fail to rank alternative income distributions.

Suggested Citation

  • SAVAGLIO, Ernesto, 2001. "A note on inequality criteria," LIDAM Discussion Papers CORE 2001014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2001014
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2001.html
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    References listed on IDEAS

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    1. Rothschild, Michael & Stiglitz, Joseph E., 1973. "Some further results on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 188-204, April.
    2. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    3. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    4. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    5. Moyes Patrick, 1994. "Inequality Reducing and Inequality Preserving Transformations of Incomes: Symmetric and Individualistic Transformations," Journal of Economic Theory, Elsevier, vol. 63(2), pages 271-298, August.
    6. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
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    Cited by:

    1. Savaglio, Ernesto, 2007. "Inequality as differences: A simple characterization," Research in Economics, Elsevier, vol. 61(1), pages 31-36, March.
    2. Zhengli Gu & Paul Madden, 2009. "Inequality in the relative differential sense with continuous distributions," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(2), pages 179-187, June.
    3. Ernesto Savaglio, 2004. "Multivariate Differences Ordering," Department of Economics University of Siena 419, Department of Economics, University of Siena.

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    More about this item

    Keywords

    inequality; orderings; transfers;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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